All Forum Posts by: Brad Sneckner

@Matt Medina Typically, unless you've done extensive structural improvements to the property, you're not going to be able to remove the Mortgage Insurance without a refinance within the first two years. After two years, you can usually just do an appraisal to prove the equity, and keep your loan and rate.

You would just want to weigh the cost/benefit with the rate change to decide if it's worth doing.

I don't know any specifically but you might try reaching out to The Norris Group here in Riverside and seeing if they have any to connect you with.

Hey @Matt Medina Nice work on such a great purchase! And I would agree, you locked in a great property in a great area with a great mortgage. Win win win! 

The info provided by @Jeff Shumway and @Doug Spence is spot on, and really helpful ways to assess your scenario. I would concur with Jeff as well that doing a cash out refi would be a fantastic way to look at securing another property, but as he said it really depends on the value and loan balance on your current mortgage. It would be hard to pull out any substantial amount of money I'm guessing, and the cost to buy the rate down to your current rate would be a big deciding factor. You don't want to increase the rate on $500k worth of loan in order to pull an extra $10-20k for example. If there is enough equity to pull, and the cost of getting your same rate is prohibitive, a HELOC could be a decent option as well. It is less likely to cashflow with an additional payment, but at least in that scenario you will be paying down far more principle each month by keeping your lower rate.

All in all, you're in a great spot and have some interesting options available to you. I would also recommend talking with a local lender to assess your specific scenario and see what we can do. I'm just up the road in Riverside so feel free to reach out if you have any questions!

Good luck either way!

Hi @Alissa Booher! I'm not too far away over here in Riverside, but I work with some agents and investors in the Redlands/Yucaipa area. Congrats on the move, and new license! 

I meet regularly with an agent in Redlands to talk about business strategy and investments, mindset and lifestyle planning, etc. Would love for you to join us sometime! 

Shoot me a private message if you're interested. 

Congrats @Kendall Kelly! And welcome to SoCal! You're in great company with the BP community, and there are no shortage of people to learn from. Good luck on your start, and don't be shy to reach out directly if you ever have questions! 

Also, I second the suggestions to join meetup groups and to listen to the podcasts often. Hopefully we'll see you around in person soon! 

Cheers to you and your growing family!

Hi Nate! Congrats on getting your start! What is your strategy for your flips? Are you looking at wholesaling or doing a reno type flip? I'm a conventional lender, not a hard money lender, so for seriously distressed properties I'm not much help. But if you ever have questions about financing with a BRRRR strategy let me know! Happy to offer ideas and insight.

Cheers!

Hey @Nate Doh! There are definitely a couple things to consider (which maybe you already have). First, you won't be able to use the room rental as income for qualifying on the loan. However, if you look at a multi-unit property, you CAN use rents from the other units to help qualify for the loan. Since you will be using an FHA loan, I would highly recommend considering a 2-4 unit property. A duplex often isn't TOO much more expensive than a good SFR, and the increase in down payment is minimal because it's still just the 3.5% for FHA.

With that said, if your heart is set on a SFR, I would definitely recommend exploring ways to increase your approval amount/purchase budget to get a place that has some decent space, and close to UCR perhaps (or another university). Renting rooms to students will really give you a solid supply of people that can afford the rent, and never have problems finding a replacement when someone moves out.

If you have any more specific questions, let me know! I'm local to Riverside as well, so good luck!

Hi @Deshaun Taylor! I live in Riverside as well! Congrats on the career move! Best of luck to you, and let me know if you want to meet for a beer downtown sometime! Shoot me a message or text message. Cell number is below. 

Great story about perseverance, and keeping his eye on the prize! Good for him to take advantage of a great loan program and also have a long-term wealth-building strategy in mind. Congrats to him and to you @Christopher Whitson! 

Agreed. I particularly like the suggestion of financing other people in the short term to earn a return on that money while you seek your deal. Put that money to work!